Meta CEO Zuckerberg Threatens California Exit Over Proposed 5% Billionaire Wealth Tax; Board Creates Nonvoting Stock

Meta CEO Mark Zuckerberg threatened to relocate his primary residence outside California if voters approve a proposed 5% one-time billionaire wealth tax, Proposition 40, on the Nov. 3 ballot, the company disclosed in a regulatory filing. In response, Meta's board approved a new class of publicly listed nonvoting Class C common stock, effective in January, that Zuckerberg can sell to raise cash for the tax without diluting his voting control. Under the proposal, the tax would take about $12.4 billion of his estimated $247 billion net worth, per the Bloomberg Billionaires Index. In exchange, Zuckerberg committed to remaining a California resident for eight years, and to move to any new headquarters location. The levy aims to raise $100 billion to shore up California's healthcare system. Meta said keeping Zuckerberg at its Menlo Park headquarters is "critically important." The new stock class will also fund AI infrastructure investments, employee compensation and acquisitions.